Vizag emerging as Andhra's next IT hub

The coastal city, about 600 km from Hyderabad, records a growth of more than 100 per cent in IT exports in 2006-07.

The coastal city of Visakhapatnam, also known as Vizag, is set to become the next IT hub as the Andhra Pradesh government has drawn up plans to take infotech beyond Hyderabad and to tier II and III cities.

The coastal city, about 600 km from Hyderabad, has recorded a growth of more than 100 per cent in IT exports in 2006-07.

Of the state's Rs 185.82 billion IT exports, Vizag accounted for Rs 2.45 billion. It is expected to cross Rs 10 billion by 2010.

"With majors like HSBC growing steadily, Satyam recently starting its major operations and Wipro to start its operations soon, Vizag is all set to become a major IT destination," E Manoj Kumar, director of Software Technology Parks of India (STPI), Hyderabad, told a press conference in Hyderabad on Tuesday.

In all 48 companies are operating in Vizag and many more are in the process of setting up their campuses. An IT corridor is also coming up at Rishikonda near the city.

A survey done by US-based Alsbridge named Vizag as one among the top 10 outsourcing destinations in India.

Other tier II cities like Vijayawada, Tirupati and Warangal are contributing to the growth of the IT sector in the state. With 20 units, Vijayawada's contribution to the exports was Rs 420 million. Exports from Tirupati, where seven units are operating, were Rs 10 million.

With the launch of an STPI facility at Kakinada in coastal Andhra in February, the state has added one more IT growth centre. STPI has set up a state-of-the-art incubation facility that would enable IT companies to get world-class infrastructure even in a tier II city.

Kumar said 12 companies were operating in Kakinada and four of them were incubated in the STPI facility.

Minister for IT and Communications R Damodar Reddy said such incubation facilities were also planned in other tier II cities.